1099-k

[vmm]

1099-K issued for personal item sales (Reverb). All items were sold at a loss. TT generating Schedule 1 line 8z with both the box 1a amount and then another line below it with the negative offset, even though IRS guidelines state to enter the negative offset on Part II line 24z. Why hasn't TT fixed this issue? Has anyone submitted tax returns done this way? Any problems?

If the sales are instead reported on form 8949 and Schedule D,

Do the sales need to be listed individually? Or can you just have one line item with "various" dates, total "proceeds" and total "cost basis"?

What happens to Schedule 1 and the 1099-K Wks, since they were already generated when asked if you received income from form 1099-K in the "1099-MISC and Other Income" category?

[DMarkM1]

Yes, you can return to the form 1099-K form entry that created the Schedule 1, line 8z entries and change your choice to "Some items were sold at a loss or no gain."  This will delete the Schedule 1 entries and move the 1099-K information to the "Investments" topic. You will find the transaction started there and you will need to now edit that transaction. 

This is a longer route than simply noting the 1099-K proceeds represent personal items, each and every one sold at a loss, ending in zero taxable income and zero deductions with the Schedule 1, line 8z entries.    

If each and every item was actually sold at a loss and sold on the same date, now in the "Investments" section, you can use 1 transaction with "Various" acquired times and one sale date.  The transaction will show on Schedule D vice Schedule 1 as a personal loss with no deductions. 

If there were items sold on different dates, you would use a different transaction for each sale date.  These transactions show on Schedule D as personal loss zero deduction.